The Option Exchanges in the United States Are Regulated by the Consumer

question 144

True/False

The option exchanges in the United States are regulated by the Consumer Finance Protection Bureau and the Federal Trade Commission.

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Definitions:

Payback Period

The length of time it takes to recover the cost of an investment.

Net Present Value

A method used to evaluate the profitability of an investment or project, calculated by discounting future cash flows to their present value.

Rate of Return

The increase or decrease in value of an investment during a set timeframe, shown as a percent of the investment's original price.

Accelerated Depreciation

A method of depreciation in which an asset loses value faster in the initial years of its useful life, with decreased amounts in later years.